May 27, 2025
When economic forecasts turn grim and markets tremble, conventional wisdom tells business leaders to hunker down and wait out the storm. Yet, history shows that some of the most transformative mergers and acquisitions (M&A) have emerged not in times of boom, but in the thick of financial chaos. For bold leaders, crisis doesn’t just represent risk—it signals opportunity.
As North America contends with persistent inflationary pressure, volatile interest rates and geopolitical uncertainty in early 2025, business leaders once again find themselves standing at a crossroads. Should they retreat and consolidate, or act decisively in the face of adversity?
From the wreckage of the Great Depression to the aftermath of the COVID-19 pandemic, periods of economic disruption have consistently given rise to iconic deals that reshaped entire industries. Here are 8 examples of landmark M&A deals struck during economic turbulence:
1 | Procter & Gamble’s Expansion (1930s)While the Great Depression of the 1930s devastated many companies, Procter & Gamble (P&G) doubled down on innovation and brand expansion. With Americans turning to radios for escape, P&G became a pioneer in branded entertainment, sponsoring soap operas and expanding its market footprint. Ultimately, strategic acquisitions helped solidify P&G’s leadership in consumer goods.
In a move emblematic of the urgency of crisis M&A, JP Morgan acquired Bear Stearns for a fraction of its pre-crisis valuation during the 2008 market crash. The deal stabilized part of the financial system and reinforced JP Morgan’s dominance.
Amidst the fallout of the 2008 financial crisis, Disney acquired Marvel for $4 billion. At the time the deal raised eyebrows, but in hindsight it was a masterstroke, giving Disney access to one of the most lucrative IP libraries of the 21st century.
In Canada, the 2008-2009 financial crisis led to a major consolidation in the energy sector. Suncor’s $15 billion acquisition of Petro-Canada created the country’s largest oil and gas company, strengthening its competitive positioning globally.
Coming off the heels of the Great Recession, Verizon made a bold $130 billion move to buy out Vodafone’s 45% stake. It remains one of the largest tech deals in history and allowed Verizon to streamline its wireless operations and strengthen its U.S. presence.
Although not directly tied to a global recession, this deal occurred during significant retail upheaval. Amazon leveraged economic uncertainty in brick-and-mortar to push aggressively into the grocery space, redefining its market boundaries.
In response to healthcare industry disruption and rising regulatory pressure, CVS acquired Aetna for $69 billion. The deal, during a time of healthcare reform uncertainty, reflected how vertical integration could improve customer outcomes and reduce costs.
During the COVID-19 pandemic, with remote work surging, Salesforce acquired Slack for nearly $28 billion. This strategic move positioned Salesforce to compete directly with Microsoft Teams and solidified its position in the digital collaboration space.
Across decades and downturns, several patterns emerge:
Valuation Discounts: Turbulent conditions often depress company valuations, offering acquirers more favorable pricing.
Smaller, Strategic Acquisitions: During times of uncertainty PEGs and other high-rolling investors are less inclined to make big M&A deals, yet they remain under pressure to deploy the dry powder they’re sitting on. This bodes well for mid-market sellers, as PEGs that previously may not have looked in their direction are more likely to consider strategic mid-sized acquisitions that carry less risk.
New Market Segments: The fact that PEGs need to deploy dry powder can open up new M&A opportunities for mid-sized businesses. For example, around three years ago it was challenging for Woodbridge to sell construction-based companies. That has changed with PEGs coming under pressure to deploy dry powder in verticals that align with their core investment mandates, which includes construction.
Motivated Sellers: Struggling companies may be more open to acquisition, especially when facing capital constraints.
Strategic Realignment: Economic shocks force firms to reassess their core strengths and divest non-core assets.
Innovation-Driven Consolidation: Crises often accelerate technological adoption, leading to tech-heavy M&A activity.
The current climate—defined by global supply chain disruptions, sustained inflation and geopolitical conflict—is already reshaping the M&A landscape. Amidst all the moving parts, there are three key trends to take note of:
Private Equity Firms in North America are sitting on historic levels of dry powder, eyeing mid-sized assets across tech, healthcare and green energy sectors due to their overall lower risk. In other words, mid-sized M&A deal activity in the USA and Canada is not expected to dampen anytime soon!
Buoyed by high commodity prices, energy companies in North America are revisiting deals paused during the Covid pandemic. Mid-sized businesses along the energy supply chain are therefore well positioned for M&A deal activity.
Despite of—or, arguably, due to—the tariff rollercoaster currently still in play, cross-border activity is gaining momentum as North American firms seek to diversify exposure amid regional uncertainties.
If history is anything to go by, economic turbulence doesn’t halt M&A—it reshapes it. For visionary leaders, these are not times to retreat. They are moments to act; to sell, acquire and/or merge strategically, and to build future resilience.
Ultimately, today’s storm may well be tomorrow’s breakthrough. The question is: will your business be bold enough to seize the opportunity?
Speak to one of our M&A experts for expert advice on your company’s M&A potential, and/or to get the lead on our mid-sized sell-side engagements in the USA and Canada.